TORONTO, July 10, 2019 /CNW/ - Callidus Capital
Corporation ("Callidus" or the "Company") (TSX:CBL) today announced
that it has closed its previously announced transaction (the
"Bluberi Transaction") to sell the Company's shares (the "Bluberi
Shares") of Bluberi Gaming Canada Inc. ("Bluberi") to certain
investment funds managed by The Catalyst Capital Group Inc. (the
"Catalyst Funds").
The purchase price paid by the Catalyst Funds for the Bluberi
Shares was $92.7 million, which was
satisfied by setting off $92.7
million of the indebtedness of Callidus owing to the
Catalyst Funds under Callidus' subordinated bridge facility. The
purchase price is the mid-point of the valuation range for the
Bluberi Shares, as determined by an independent valuator.
Callidus' shareholders voted to approve the Bluberi Transaction
at Callidus' annual general and special meeting held on
July 2, 2019, which vote excluded the
votes attached to shares held by the Catalyst Funds and their
related parties as required pursuant to Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special
Transactions.
The definitive agreement (the "Agreement") in respect of the
Bluberi Transaction contemplated that, if the consent to the
lenders (the "CLO Lenders") under the Company's collateralized loan
agreement was obtained, Callidus also would assign to the Catalyst
Funds the debt (the "Bluberi Debt") owing by Bluberi to Callidus
and Callidus' wholly-owned subsidiary, Callidus ABL Corporation. As
the consent of the CLO Lenders has not been obtained, the Company
has not assigned the Bluberi Debt to the Catalyst Funds.
Further information regarding the Bluberi Transaction is
available in the management information circular of the Company
dated May 31, 2019, the Agreement and
the material change report of the Company in respect of the Bluberi
Transaction. Copies of the foregoing are available on SEDAR at
www.sedar.com.
About Callidus Capital Corporation
Established in
2003, Callidus Capital Corporation is a Canadian company that
specializes in innovative and creative financing solutions for
companies that are unable to obtain adequate financing from
conventional lending institutions. Unlike conventional lending
institutions who demand a long list of covenants and make credit
decisions based on cash flow and projections, Callidus credit
facilities have few, if any, covenants and are based on the value
of the borrower's assets, its enterprise value and borrowing needs.
Further information is available on our
website, www.calliduscapital.ca.
SOURCE Callidus Capital Corporation